Macy's(M) - 2025 Q4 - Annual Results

Sales Performance - Macy's, Inc. reported fourth quarter net sales of $7.8 billion, a decrease of 4.3% compared to the fourth quarter of 2023, with comparable sales down 1.1% on an owned basis[4]. - The company's go-forward business comparable sales were down 0.7% on an owned basis, while the First 50 locations achieved a 0.8% increase in comparable sales on an owned basis[5]. - For fiscal year 2024, net sales decreased 3.5% to $22.3 billion, with comparable sales down 2.0% on an owned basis[9]. - Net sales for the 13 weeks ended February 1, 2025, were $7,768 million, a decrease from $8,120 million for the 14 weeks ended February 3, 2024[29]. - Total revenue for the 52 weeks ended February 1, 2025, was $23,006 million, compared to $23,866 million for the 53 weeks ended February 3, 2024, reflecting a decline of 3.6%[32]. - Comparable sales decreased by 1.1% on an owned basis for the 13 weeks ended February 1, 2025, with a decrease of 2.0% for the 52 weeks[48][49]. - The company reported a decrease in comparable sales on an owned-plus-licensed-plus-marketplace basis of 0.2% for the 13 weeks ended February 1, 2025[48]. Financial Performance - Macy's ended fiscal year 2024 with $1.3 billion in cash, generating nearly $1.3 billion of operating cash flow and $679 million of free cash flow[5]. - Net income for the 52 weeks ended February 1, 2025, was $582 million, a significant increase from $45 million for the 53 weeks ended February 3, 2024[37]. - Basic earnings per share for the 52 weeks ended February 1, 2025, were $2.10, compared to $0.16 for the previous year[32]. - Adjusted net income for the 52 weeks ended February 1, 2025, was $745 million, with adjusted diluted earnings per share of $2.64[54]. - Free cash flow for the 52 weeks ended February 1, 2025, was $679 million, reflecting ongoing cash generation available for investments[55]. - Adjusted EBITDA for the 13 weeks ended February 1, 2025, was $903 million, compared to $1,091 million for the 14 weeks ended February 3, 2024[54]. Margins and Expenses - The gross margin rate for fiscal year 2024 was 38.4%, remaining flat compared to the previous year[10]. - SG&A expenses for fiscal year 2024 were $8.3 billion, a decrease of $45 million, but as a percentage of total revenue, it increased to 36.2% due to lower total revenue[10]. - Gross margin for the 52 weeks ended February 1, 2025, was $8,553 million, representing 38.4% of total revenue, consistent with the previous year[32]. - The company reported a gross margin of $2,777 million, or 35.7%, for the 13 weeks ended February 1, 2025, down from $2,967 million, or 36.5%, for the 14 weeks ended February 3, 2024[29]. - Other revenue for the 52 weeks ended February 1, 2025, was $713 million, accounting for 3.2% of net sales, compared to $774 million, or 3.4%, the previous year[39]. Future Guidance - Fiscal year 2025 guidance includes expected net sales of $21.0 billion to $21.4 billion, with comparable owned-plus-licensed-plus-marketplace sales projected to decline by approximately 2.0% to 0.5%[19]. - Adjusted diluted earnings per share for fiscal year 2025 is expected to be between $2.05 and $2.25[19]. Cash Flow and Assets - Cash flows from operating activities for the 52 weeks ended February 1, 2025, were $1,278 million, slightly down from $1,305 million for the previous year[37]. - Total assets as of February 1, 2025, were $16,402 million, an increase from $16,246 million as of February 3, 2024[34]. - Current liabilities as of February 1, 2025, totaled $4,524 million, compared to $4,532 million the previous year[34]. Other Insights - The company emphasizes that non-GAAP financial measures should be viewed as supplemental to GAAP results, as they provide additional insights into operational performance[45]. - Macy's Media Network revenue increased by 6.7% to $64 million, reflecting growth in the number of advertisers and campaign counts[12]. - The impact of departments licensed to third parties and marketplace sales contributed positively with an increase of 1.3% for the 13 weeks ended February 1, 2025[48].